Fast-food chain Ajisen (China) recently announced its entry into the high-end restaurant market by opening the first restaurant named Wakayama in the International Finance Center (IFC) of Hong Kong.

Ajisen (China) is the sole franchisee of Japan’s Ajisen branded restaurant on the mainland and in Hong Kong. Entering China in 1996, it has earned a reputation for offering high-quality Japanese noodles and dishes, making it one of China’s largest fast food restaurant chain operators.

Wakayama, the brand name of the high-end restaurant, is derived from Japan's ancient scenic capital Wakayama, the birthplace of Japanese cuisine known as the "Treasure House” of food materials. This name conveys the noble and elegant image of the new restaurant and its rich cultural background.

As a new brand catering to the high-end market, Wakayama’s target market is the senior staff of large companies, as well as other high-income consumer groups. Thus, it will be located in high-grade commercial areas or five-star hotels to fit its brand positioning.

Meanwhile, Wakayama integrates ancient techniques and new technology on the basis of two-years of research and development. They invite experienced Japan cooking experts with all-natural, no-MSG, cooking methods and develop both delicious and beautiful soups and food offerings to meet the high-end consumers’ requirements.The average cost per person to dine at Wakayama is 150- 180 RMB, while at Ajisen Ramen it is around 37 RMB. According to a report released by China Merchants Securities (HK), the Wakayama IFC had a gross margin of over 70%, and its net profit margin is also higher than the general Ajisen Ramen shop, with the sales volume reaching 1.4 million Hong Kong dollars in the first month.

Although Ajisen (China) is optimistic about its high-end market in 2010, they should pay attention to their brand strategy. After all, it’s no easy task to build a luxurious brand image of a high end restaurant derived from a fast food noodle shop!